CBA ‘falls short’ on climate policy

CBA released its first 'Climate Policy Position Statement' yesterday as part of its annual report, in which the bank committed to both decrease the intensity of its business lending and reduce its own emissions.

Market Forces executive director Julien Vincent said CBA’s position statement demonstrated they were “not even pretending” to make an effort.

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>CBA released its first 'Climate Policy Position Statement' yesterday as part of its annual report, in which the bank committed to both decrease the intensity of its business lending and reduce its own emissions.

Market Forces executive director Julien Vincent said CBA’s position statement demonstrated they were “not even pretending” to make an effort.

“Unlike the bank’s peers in Australia and overseas that are taking concrete steps to avoid the most carbon intensive sectors, Commonwealth Bank clearly lacks either the interest or competency to fulfil its commitment to help hold global warming below two degrees,” Mr Vincent said.

According to CBA’s position statement, the bank would “target an average emissions intensity decrease of our business lending portfolio consistent with our commitment to a net zero emissions economy by 2050”.

However, the Market Forces analysis suggested this statement was vague and lacking in detail.

“The wording of this statement is very concerning as it is aspirational but no hard targets are being set,” the analysis said.

“It also covers the bank’s entire business lending, leaving room for some sectors to increase while others decrease. It is also a target that could conceivably be met by adding more renewable energy to energy portfolios (which is of course positive) but not necessarily requiring reductions on exposure to fossil fuels.

“This offers no confidence whatsoever that Commonwealth will reduce its fossil fuel exposure.”